A double-decker houseboat was spotted sailing while engulfed in flames off India's south coast.

The incident took place on January 23 in the Muhamma Panchayat (Alappuzha district) in the south Indian state of Kerala.

Miraculously 16 people, 13 tourists and 3 crew members, escaped unharmed when the houseboat unexpectedly caught fire while cruising near Pathiramanal island in Vembanad Lake.

According to the reports, the boat was operating without the mandatory licenses and the cause of the incident is being investigated.

Miraculous moment when 16 people, 13 tourists and 3 crew members escaped unharmed when the houseboat unexpectedly caught fire while cruising near Pathiramanal island in Vembanad Lake.

The incident took place on January 23 in the Muhamma Panchayat(Alappuzha district) in the south Indian state of Kerala.

Visuals show the stranded houseboat burning in the middle of the lake as the rescue operation was underway.

Footages also show the aftermath of the evacuation where the rescue team tried to douse out the flames of the burning boat by throwing water lettuce found on the surface of the lake.

According to the reports, the boat was operating without the mandatory licenses and the cause of the incident is being investigated.